In 2009, the U.S. economy was experiencing an inflationary gap
a. True
b. False
Indicate whether the statement is true or false
False
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Quinn's income to spend each month on two normal goods, bowling or eating out, is $100. It costs $10 to bowl for the night, and it costs $20 for Quinn to eat at a restaurant. Quinn currently consumes four nights of bowling and three meals at a restaurant. If the price of bowling increased to $15, the income effect would predict:
A. Quinn would consume more of each good. B. Quinn would consume less bowling and more meals out. C. Quinn would consume less of each good. D. Quinn would consume more bowling and less meals out.
Price wars occur more often in monopolistic competition than in other market structures
a. True b. False
The supply-side shocks of the 1970s shifted the aggregate supply curve inward
a. True b. False Indicate whether the statement is true or false
Wilson is offered a job in Kansas City that pays $50,000 and a job in Dallas that pays $60,000 . Which pair of CPIs would ensure that the two salaries have the same purchasing power?
a. 80 in Kansas City and 100 in Dallas b. 125 in Kansas City and 150 in Dallas c. 100 in Kansas City and 124.5 in Dallas d. 100 in Kansas City and 140 in Dallas